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GBP/NZD in Ascending Triangle on Weekly Chart

August 26, 2018 (Last updated on November 12, 2018) by

The British pound entered a rather long period of consolidation against the New Zealand dollar back in October-November 2017 and is trading inside a narrowing range since then. Although the formed pattern cannot be called a perfect ascending triangle (it looks like a mix of a symmetrical triangle and an ascending one), it offers a valid trading opportunity in my opinion.

The chart below shows the triangle’s borders with the yellow lines. The potential entry level in case of a bullish breakout is marked with the cyan line. It is located at 10% of the triangle’s base width above the upper border. I will set my take-profit level to the green line, which is located at 100% of the triangle’s width above the upper border. I will set my stop-loss to the low of the breakout candle here unless it trades mostly outside the triangle. In that case, I will set my stop-loss to the low of the preceding candle. I recommend ignoring a bearish breakout from this ascending triangle because it should act as a continuation pattern for the previous uptrend. You can click on the chart below to see a full-size screenshot of the formation:

GBP/NZD - Ascending Triangle Pattern on Weekly Chart as of 2018-08-26

The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/NZD pattern. It can be traded using my free Chart Pattern Helper EA.

Update 2018-09-05 14:43 GMT: Long trade triggered with a modest breakout about two hours ago today at 1.97093 with stop-loss at 1.91481 and take-profit at 2.10893:

GBP/NZD - Ascending Triangle Pattern on Weekly Chart as of 2018-09-05 - Post-Entry Screenshot

Update 2018-11-12: After going halfway to the target, the currency pair reversed its course and hit my stop-loss today at 6:33 GMT:

GBP/NZD - Ascending Triangle Pattern on Weekly Chart as of 2018-11-12 - Post-Exit Screenshot

If you have any questions or comments regarding this ascending triangle on GBP/NZD chart, please feel free to submit them via the form below.

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